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Some commercial buildings could fail to meet legal minimum energy standards and become ‘stranded assets’, according to real estate management firm Colliers.
The Minimum Energy Efficiency Standards (MEES), set to be extended in 2023, will mean buildings with an EPC rating lower than E will no longer be lettable. This could affect up to 10% of London offices, the firm said.
Tom Wildash, co-head of office leasing in London’s West End at Colliers, told the Financial Times: ‘If you are sitting on a building that’s below an E rating and you want to get to a B rating, that’s a substantial bit of refurbishment.